Energean cuts FY production guidance after Q1 hit by shutdown

(Sharecast News) - Gas producer Energean downgraded its full-year production guidance on Wednesday as it posted a decline in first-quarter output and revenue due to a 41-day production shutdown in Israel.

Energean said Q1 total revenue and other income from production activities fell to $288m from $407m in the same period a year earlier, while adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses fell 34% to $184m. Total average production dropped 21% to 114,000 barrels of oil equivalent per day.

The company said this was due to the temporary suspension of production in Israel between 28 February and 9 April following a directive from the Ministry of Energy and Infrastructure due to geopolitical escalations.

Energean cut its group production guidance for 2026 to between 130 and 140 kboed from previous guidance of 140 to 150 kboed.

Chief executive Mathios Rigas said: "The Energean Power FPSO resumed operations safely and without incident on 9 April after a 41-day suspension due to the regional conflict and ministerial directive.

"We restored full production within 48 hours of receiving the ministerial greenlight, a testament to the quality of our asset and operations team."

Mathios said that since the restart, group production has averaged 152 kboed to end-April, tracking original guidance.

"Looking ahead, in Israel, we expect an imminent uplift in Brent-linked liquids revenues with commissioning of the second oil train expected to complete by around the end of May," Mathios said.

"Our development projects in Israel and Croatia remain firmly on track for first gas in H1 2027. In Egypt, we have reduced receivables to historic lows and are close to agreeing the merger of concessions, further strengthening an already solid operational base. We have also secured a new drilling rig for 2027 to support our next phase of growth drilling.

"Our organic growth outlook is compelling with two near-term exploration catalysts across Greece and Egypt, targeting around 300 mmboe of prospective resources."

At 1030 BST, the shares were down 1.8% at 870.74p.

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